A Step-by-Step Process to Purchase RECs for Businesses in Singapore

Sustainability is increasingly becoming a core business consideration in Singapore. While the level of pressure may vary by industry, there is a growing expectation—from regulators, investors, and customers alike—for companies to demonstrate meaningful progress on their climate commitments, supported by transparent reporting and action.

One practical approach for businesses is to purchase Renewable Energy Certificates (RECs) in Singapore. These certificates offer a verified way to support renewable electricity production, without needing direct access to green power infrastructure.

RECs provide a straightforward method to balance electricity use with environmental goals. For businesses seeking to meet sustainability frameworks and reduce their carbon footprint, the process is structured and credible. Here's how to get started.

What Are Renewable Energy Certificates (RECs)?

A Renewable Energy Certificate, or REC, represents 1 megawatt-hour (MWh) of electricity generated from renewable sources like solar, wind, or biomass. When you purchase a REC, you are effectively supporting clean energy generation.

RECs are traded separately from physical electricity. This means companies can claim renewable energy use without being directly connected to the green energy source. The process is internationally recognised and supported by global certification bodies such as the International REC Standard (I-REC) and APX’s Tradable Instrument for Global Renewables (TIGRs) Registry.

These accreditation systems ensure transparency and traceability. Each certificate has a unique identifier, timestamp, and information about the project’s location and technology.

Why Should Your Business Consider Buying RECs?

Companies are increasingly turning to RECs to support environmental goals and meet disclosure standards. These certificates offer tangible benefits, such as:

• Sustainability Compliance: RECs help you align with environmental reporting standards such as the GHG Protocol, CDP, or GRESB. This ensures that your climate reporting stands up to scrutiny.
• Stakeholder Assurance: Demonstrating proactive sustainability goals that builds confidence among investors, clients, and regulators.
• Brand Credibility: Businesses with clear environmental strategies are more likely to earn trust and loyalty from customers.
• Support for Singapore’s Climate Agenda: Purchasing RECs contributes to the country’s Intended Nationally Determined Contributions (INDCs) under the Paris Agreement.

How to Purchase RECs for Businesses in Singapore

Below is a straightforward process to guide your purchase of RECs for businesses in Singapore.

Step 1: Determine Your Usage

To purchase RECs for your business in Singapore, start by reviewing your energy bills. This will help you calculate the number of RECs required to match your electricity consumption. Since one REC corresponds to 1 megawatt-hour (MWh) of renewable electricity, knowing your usage is essential to set the right volume for purchase.

Step 2: Choose Technology Type

Select the renewable energy technology that suits your business priorities. Common options include solar, hydro, biomass, and more. Your choice can reflect company values, stakeholder preferences, or specific sustainability goals.

Step 3: Secure and Store Your RECs

Once purchased, RECs are stored in accounts with recognised registries such as I-REC or APX TIGRs, which normally carry subscription fees. However, when you procure RECs through EMC, those fees are covered on your behalf. These accounts then provide a secure way to hold your certificates until you’re ready to use them.

Step 4: Redeem and Retire

The final step is to retire your RECs. Retiring means formally redeeming the certificates to claim verified green energy credits. This retirement prevents the RECs from being sold or used again, allowing you to report your renewable energy use with confidence.

Our Role in Facilitating REC Purchases

Purchasing RECs is one of the more direct ways businesses in Singapore can demonstrate action on climate commitments. The process is straightforward, the impact is measurable, and the alignment with national and global climate targets is clear.

As expectations around sustainability reporting continue to rise, taking steps now puts your business on firmer ground.

Powerselect simplifies the process of purchasing RECs for businesses in Singapore by offering access to a wide selection of renewable energy projects, work with recognised international registries, and manage the full REC lifecycle—from procurement to certification and retirement—making it easier for businesses to advance their sustainability goals.

Ready to reduce your Scope 2 emissions? Know how we can assist your business in purchasing RECs here.